Property investment is a popular wealth-building strategy that, when done right, can yield significant returns over time.
In this article, we’ll explore what an advanced property investment plan and portfolio look like and how you can create one to achieve your financial goals.
An advanced property investment plan and portfolio goes beyond simply purchasing properties; they involve meticulous planning, risk management, and diversification to maximise returns and mitigate potential pitfalls.
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Clear Investment Goals: The foundation of any successful property investment plan is a clear set of goals. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, your goal might be to achieve a certain level of passive income within the next 10 years or to retire 5 – 10 years earlier on your current income.
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Thorough Research: An advanced property investment plan starts with thorough research. This includes researching the property market, understanding current trends, and identifying potential investment opportunities. It’s important to consider factors such as location, property type, rental yields, and potential for capital growth.
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Professional Advice: Self-education is crucial, professional advice is invaluable. A Property Wealth Planner is like a financial planner but specifically for property. Seeking the services of a Qualified Property Investment Advisor should be your first step. Your QPIA will work with your other advisors including conveyancers, property managers, buyers agents, investment finance specialists, your accountant and tax advisors to ensure the advice you are receiving is cohesive and thorough.
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Risk Management Strategies: Advanced property investment plans minimise all investment risk. This includes diversifying your property portfolio across different locations and property types, potentially different lease options (long term and short term or corporate let). It also involves having contingency plans and cash buffers in place for unforeseen events such as interest rate increases as seen lately or tenant vacancies.
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Financial Literacy: A key aspect of an advanced property investment portfolio is financial literacy. While all property investors should have a base level of financial literacy around loan types, budgets, cash flow, tax implications and equity positions, understanding key concepts like security substitution and how to effectively leverage equity are integral to an advanced property investment portfolio.
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Long-Term Planning: While property investment isn’t set and forget, it does require long term planning, particularly when building an advanced property portfolio. Having a strategy in place for the long term, knowing where property cycles are up to, holding through the growth phase and monitoring which property markets are booming and plateauing.
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Portfolio Management: Knowing what to buy, when to buy and where to buy are all important factors, an equally important but often overlooked factor is knowing when to sell or divest a property. Selling a property in market that is at the peak of its growth and redeploying the equity gains into other property markets that are beginning their growth phase can supercharge your long-term wealth creation.
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Regular Portfolio Reviews: Reviewing your portfolio, at least annually if not twice annually is essential to advanced property investment. Things to review are fees being paid, rental income received, rental yield, cash buffer amount, interest rates and loan types, equity positions, overall performance and growth in the market and whether you are in a position to invest in further high performing properties.
An advanced property investment plan and portfolio are characterised by clear goals, thorough research, professional advice, risk management strategies, financial literacy, a long-term planning, portfolio management and regular portfolio reviews. While this seems like a big list and can be daunting, your Property Wealth Planner is there with you every step of the way and can often handle most of your property portfolio planning and management for you.
With the right professional advice and team around you, you could be hundreds of thousands, if not millions of dollars better off over the lifetime of your property investment journey.
Phenomenal returns in Adelaide
inSynergy were early movers into the Adelaide market, identifying it as a strong investment opportunity in early 2020. There have been a few notable sites including one in Port Adelaide which has seen significant returns. The site has a mix of apartments and townhomes, with a range of properties to suits a number of inSynergy clients. We’ve recently had a couple of the properties re-valued, and the equity uplift alone is life changing.
Apartment: 41% capital increase over 3 years.
a two-bedroom, one bathroom, one car apartment purchased in June 2020 for $399,900. This property is currently short term let achieving an 11% net yield, (43,505 in rental income in the last financial year). This property was recently re-valued at $560,000 – an increase of $160,000 in three years.
Townhome: $255,000 increase in 2 years
a three-bedroom, two bathroom, townhome with parking was purchased in early 2021 for $674,900. This property is now valued at $930,000, an uplift of $255,000 in just two years.
These returns create lifechanging wealth accumulation as well as instant increases to clients cashflow. While these results seem phenomenal, the research, data and insights available at inSynergy allow us to consistently deliver returns like these for our clients.
“We were referred to inSynergy about 5 years ago and we have never looked back. our portfolio has grown immensely. I have referred a few of my close friends and they are in the process of either purchasing a property or have already purchased.
Thanks inSynergy looking forward to working with you all and grow my portfolio even more in the years to come!” – Krishna, NSW
Visit www.inSynergy.net.au to request a complementary consultation with one of our experienced Property Wealth Planners.
p. 1300 425 595
e. hello@insynergy.net.au
Level 1, Suite 8, 22 Darley Road, Manly
www.insynergy.net.au
Important Note and Warning: This information must not be taken as financial advice. This is general information only and you should seek out relevant and independent professional advice before making a financial decision.